Asked by levana znaty on May 21, 2024
Verified
According to the efficient markets hypothesis, what changes the price of a share of a corporation's stock? Make up an example.
Efficient Markets Hypothesis
The theory that financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns than the overall market.
Share Price
The current price at which a single share of a company's stock can be bought or sold in the financial markets.
- Elucidate the theory of efficient markets and its consequences for devising investment strategies.
Verified Answer
ML
Makenna LambrechtMay 24, 2024
Final Answer :
Only news that changes the public's perception of the value of the corporation. If a company's profits are higher than anticipated, its price goes up.
Learning Objectives
- Elucidate the theory of efficient markets and its consequences for devising investment strategies.